Moody's rates Alam Synergy B2

Moody's Investors Service said it assigned a backed senior unsecured rating of B2 to the proposed senior unsecured notes to be issued by Alam Synergy Pte. Ltd.

The proposed notes are guaranteed by Alam Sutera Realty Tbk. and most of its subsidiaries, the agency noted, and rank pari passu with the 2020 notes and 2022 notes.

The outlook is negative.

The proceeds will be used toward partial refinancing of its 2020 notes and general corporate purposes, Moody's said.

The rating on the notes is in line with Alam Sutera's B2 corporate family rating because the proposed notes are not exposed to either legal or structural subordination risk, the agency said.

The successful issuance of the notes would be credit positive because it will improve Alam Sutera's liquidity, Moody's said, and partially address the company's refinancing risk.

The company's adjusted debt-to-homebuilding EBITDA will remain at about 3.5x in 2019, the agency noted.

The ratings reflect the company's ownership of a large and low-cost land bank, which allows it to generate strong gross profit margins exceeding 50%, Moody's said.

The ratings are constrained by Alam Sutera's small scale and limited geographic diversity, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.